TUESDAY, 9.15AM:
The black empowerment group Real Africa Holdings has announced its most ambitious deal to date, buying up half of the country’s largest information technology group.
Real Africa, headed by Don Ncube, will pay R1 billion by May next year for half the South African operations of PQ Data. PQ Data was itself only recently formed from the merger of the IT companies Q Data and Persetel.
A new company containing most of the local business interests of PQ Data is to be formed, and called PQ Africa. It is effectively controlled by Real Africa through an elaborate pyramid structure headed by a National Information Technology Acquisition Consortium, which will also include trade union, church, women and other interests, as well as smaller black enterprises, who will contribute a second R1 billion.
Some of PQ Data’s most lucrative assets, including overseas interests and the promising Internet commerce company ECNet, are not included in the deal, but analysts seem confident the new group has considerable growth potential. Real Africa’s purchase price is valued at 20 to 30% below the real value of the companies involved.